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The second half of 2025 brings a cautiously optimistic housing forecast. National experts agree: while we’re not in a boom, we’re not headed for a bust either. Home prices are expected to rise modestly—by 1.5% to 2%—and inventory levels are slowly improving, offering some relief to buyers without overwhelming the market.
What’s Driving the National Outlook?
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Mortgage rates are expected to remain in the 6.5%–7% range through the end of the year. That may feel high compared to recent lows, but it’s still manageable for many buyers.
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Inventory is projected to rise about 15% by year-end, which could ease some price pressure—but supply will still lag demand in most areas.
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Price growth remains modest. While some markets may see a slight dip, most are expected to hold steady or see small increases, avoiding any dramatic downturn.
Despite concerns about affordability and rate volatility, most economists agree the fundamentals don’t point to a crash. Instead, they predict a slower, steadier market that favors well-informed decisions.
Lynnwood, WA: How the Local Market Compares
Here in Lynnwood and greater Snohomish County, we’re seeing many of these national trends play out with our own local nuances.
Home Prices
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The median sale price in Lynnwood (for all property types) is currently hovering around $758,950, down just over 1% from last year.
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On average, homes are selling for slightly less than list price at 98.8%, and price cuts are becoming more common as buyers gain negotiating power.
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Zillow’s home value index for Lynnwood shows a 0.8% increase year-over-year, signaling that while we’re not in a rising-price environment, we’re not seeing major declines either.
Inventory & Competition
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Inventory remains tight, especially in the $400K–$1M range, where most buyer activity is concentrated.
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The market still leans toward sellers, with competitively priced homes typically receiving two to three offers and going under contract in about 25 days on average.
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Higher-end properties are seeing slower activity unless priced aggressively or presented in move-in-ready condition.
Buyer Behavior
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Buyers are rate-sensitive and selective, but still active—especially as more homes hit the market.
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Demand is driven by location, updates, and price. Homes near light rail expansion and updated interiors continue to attract the most attention.
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Financing remains a key factor; buyers who are pre-approved and ready to move quickly still have the edge.
National vs. Local: A Quick Comparison
| Trend | National Outlook | Lynnwood Snapshot |
|---|---|---|
| Home Prices | +1.5% to +2% growth forecast | -1% to flat YOY change |
| Inventory | Gradually increasing | Tight in mid-range; competitive |
| Mortgage Rates | Holding between 6.5%–7% | Consistent with national rates |
| Buyer Activity | Softening, but stable | Competitive in core price tiers |
What It Means for Buyers and Sellers
Sellers:
Pricing strategically is key. Overpricing will likely lead to longer market times or price reductions. Focus on presentation, repairs, and smart updates to stand out—especially in the $750K+ tier.
Buyers:
There’s opportunity to negotiate, especially with motivated sellers and homes that have lingered. Get pre-approved, be clear on your budget, and stay alert for price reductions or favorable terms.
Both:
Don’t rely solely on national headlines. Real estate is local. While national trends offer helpful context, your decisions should be based on what’s happening in the Lynnwood area—right now.
Final Thought
As we move through 2025, the housing market is settling into a more balanced rhythm. If you’re buying or selling in Lynnwood, understanding both the big picture and your neighborhood dynamics will give you the confidence to act wisely.
Want a personalized look at your home’s value or local options? I’m happy to walk you through it. Let’s make the market work for you.
